COM/MP1/JF2/acb
Mailed April 8, 2005
Decision 05-04-023 April 7, 2005
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company to issue, sell, and deliver one or more series of Debt Securities and to guarantee the obligations of others with respect to the issuance of Debt Securities, the total aggregate principal amount of such long-term indebtedness and guarantees not to exceed $2 billion; to execute and deliver one or more indentures; to sell, lease, assign, mortgage, or otherwise dispose of or encumber utility property; to issue, sell and deliver in one or more series, an aggregate amount not to exceed $200 million par or stated value of First Preferred Stock -- $25 Par Value; to issue an aggregate $2 billion of short-term debt obligations; to utilize various debt enhancement features; enter into interest-rate hedges; and for an exemption from the Commission's Competitive Bidding Rule. (U 39 M) |
Application 04-05-041 (Filed May 27, 2004) |
OPINION GRANTING PACIFIC GAS AND ELECTRIC COMPANY'S PETITION TO MODIFY DECISION 04-10-037
TABLE OF CONTENTS
Title Page
OPINION 2
1. Summary 2
2. Background 2
3. PG&E's Petition to Modify D.04-10-037 3
i. Compliance with the Authorized Capital Structure 3
ii. Authorized Uses of Long-Term Debt and Preferred Stock 5
iii. Authority to Encumber Accounts Receivable 6
iv. Modification of Ordering Paragraph 6 7
4. Comments on the Draft Opinion 7
5. Assignment of Proceeding 8
Findings of Fact 8
Conclusions of Law 9
ORDER 10
1. Summary
This Opinion grants Pacific Gas and Electric Company's (PG&E's) petition to modify Decision (D.) 04-10-037. The specific modifications to D.04-10-037 are as follows. First, we remove the specific financing order condition that long-term debt and preferred stock issued pursuant to D.04-10-037 must result in a capital structure that complies, on average, with the Commission-adopted capital structure during the period the adopted capital structure is in effect for ratemaking purposes. PG&E's long-term debt and preferred stock will not be voided if PG&E fails to maintain its capital structure in accordance with Commission requirements. Second, PG&E may use the long-term debt and preferred stock authorized by D.04-10-037 for every purpose listed in Pub. Util. Code § 817.1 Third, long-term debt and preferred stock that is issued pursuant to D.04-10-037 may be secured by PG&E's accounts receivable. Fourth, PG&E may renew its accounts receivable credit facility when it expires in 2007. Finally, Ordering Paragraph (OP) 6 is corrected to provide PG&E with authority to issue First Mortgage Bonds as primary obligations.
1 All statutory references are to the Public Utilities Code unless otherwise indicated.
